RICHMOND, BC, March 20, 2013 /CNW/ - Catalyst Paper (TSX:CYT) announced
today that it has completed the sale of its approximately 50% interest
in Powell River Energy Inc. and Powell River Energy Limited Partnership
to Powell River Energy Trust, a Brookfield Renewable Energy affiliate,
for $33 million.
Approximately $12.7 million of the net proceeds of the sale will be
distributed to certain unsecured creditors of Catalyst pursuant to its
plan of arrangement under the Companies' Creditors Arrangement Act
through the Monitor, Pricewaterhouse Coopers. The company will offer
to purchase a portion of its Floating Rate Senior Secured Notes with
the balance of the net proceeds.
Catalyst Paper manufactures diverse specialty mechanical printing
papers, newsprint and pulp. Its customers include retailers, publishers
and commercial printers in North America, Latin America, the Pacific
Rim and Europe. With three mills, located in British Columbia, Catalyst
has a combined annual production capacity of 1.5 million tonnes. The
company is headquartered in Richmond, British Columbia, Canada and is
ranked by Corporate Knights magazine as one of the 50 Best Corporate
Citizens in Canada.
Certain matters set forth in this news release are forward-looking.
These forward-looking statements reflect management's current views and
are based on certain assumptions including assumptions as to future
operating conditions and courses of action, economic conditions and
other factors management believes are appropriate. Such forward looking
statements are subject to risks and uncertainties that may cause actual
results to differ materially from those contained in these statement,
including those risks and uncertainties identified under the heading
"Risks and Uncertainties" in Catalyst's management's discussion and
analysis contained in Catalyst's annual report for the year ended
December 31, 2012, which is available at www.sedar.com.
SOURCE: Catalyst Paper Corporation
For further information:
Vice President, Finance & CFO
Vice President, Treasurer & Corporate Controller
Vice President, Marketing & Corporate Responsibility